Larry Kudlow, director of the U.S. National Economic Council, speaks during a television interview outside the White House in Washington, D.C.

National Economic Council Director Larry Kudlow cheered the Trump administration's economic measures on Thursday, noting the U.S. economy is outperforming the rest of the world.

"We are the hottest economy in the world right now. We're crushing it," Kudlow said. "Europe is slowing down. Asia is slowing down. We are moving rapidly."

Kudlow noted that the U.S. economy expanded by 3.2 percent in the first half and that the Atlanta Federal Reserve is expecting growth of 4 percent for the third quarter.

U.S. stocks are also largely outperforming global equities. The S&P 500 is up 3.8 percent year to date, while the European Stoxx 600 index has dropped 7.1 percent. In Asia, the Shanghai composite has plummeted more than 21 percent while the Japanese Nikkei 225 is down about 1 percent.

"Right now, the U.S. is carrying the ball. I don't see an end to it," Kudlow added. "With all due respect, I don't think this is anything resembling a sugar high. President Trump has changed the incentives in the economy. The war on business is over."

Before the start of 2018, President Donald Trump signed a bill that slashed the corporate tax rate to 21 percent from 35 percent. The administration has also rolled back regulations that it deems are hurtful to businesses.

Kudlow spoke with CNBC's "Squawk on the Street" a day after stocks had their worst day since February. The Dow Jones Industrial Average plunged more than 800 points while the S&P 500 dropped more than 3 percent on Wednesday amid a rout in tech shares and worries over higher rates sent.